November 20, 1998: 6:38 p.m. ET Forty six states and five territories sign on to $206B tobacco settlement NEW YORK (CNNfn) - A group of 46 states reached an agreement Friday with leading tobacco companies that calls for cigarette makers to pay the states $206 billion and submit to sweeping advertising and marketing restrictions.
Full Answer
How many States entered into a Master Settlement Agreement with tobacco companies?
[15] On November 23, 1998, the Attorneys General of the remaining 46 states, as well as of the District of Columbia, Puerto Rico, and the Virgin Islands, entered into the Master Settlement Agreement with the four largest manufacturers of cigarettes in the United States.
What was the significance of the 1998 tobacco settlement?
November 1998 marked a pivotal moment in the history of cigarettes in the United States. Forty-six states and the four largest tobacco companies reached a landmark settlement that brought sweeping changes to cigarette manufacturers’ practices—and to rates of smoking.
How many states have filed lawsuits against the tobacco industry?
The deal resolves 37 state suits filed against the tobacco industry to recoup Medicaid costs of sick smokers. Four states -- Florida, Minnesota, Mississippi and Texas -- had previously negotiated separate settlements with the tobacco companies.
How has the settlement affected cigarette smoking?
Forty-six states and the four largest tobacco companies reached a landmark settlement that brought sweeping changes to cigarette manufacturers’ practices—and to rates of smoking. Since the settlement, cigarette smoking rates in the United States have been cut nearly in half.
What was the result of the 1998 tobacco settlement?
In the largest civil litigation settlement in U.S. history, the states and territories scored a victory that resulted in the tobacco companies paying the states and territories billions of dollars in yearly installments.
What restrictions were included on tobacco in the 1998 $200 billion settlement agreement?
Prohibits access by youth to free samples of tobacco products. Prohibits payments for placement of tobacco products in the media. Prohibits outdoor advertising of tobacco products. Prohibits transit ads, on or in public or private vehicles.
What effect did the 1998 American tobacco settlement have on tobacco sold in the US?
The MSA continues to have a profound effect on smoking in America, particularly among youth. Between 1998 and 2019, U.S. cigarette consumption dropped by more than 50%.
What happened in the 1990s that turned things around for the plaintiff suing tobacco companies?
In the 1990s, plaintiffs began to have limited success in tobacco lawsuits, partly because some cigarette company documents were leaked showing the companies were aware of the addictive nature of tobacco.
Which of the following is a requirement of the Family smoking Prevention and tobacco Control Act?
The Act gives the Food and Drug Administration the power to regulate the tobacco industry. A signature element of the law imposes new warnings and labels on tobacco packaging and their advertisements, with the goal of discouraging minors and young adults from smoking.
Where did the tobacco settlement money go?
This year (fiscal year 2020), the states will collect $27.2 billion from the 1998 tobacco settlement and tobacco taxes. But they will spend less than 3% – just $739.7 million – on programs to prevent kids from using tobacco and help smokers quit - less than a quarter (22.4%) of the total funding recommended by the CDC.
What was the Big Tobacco lawsuit?
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
Which statement about the effects of nicotine use is true quizlet?
Which statement about the effects of nicotine use is true? Nicotine has no effect on brain chemistry.
How tobacco settlement money helps Disease Prevention and health Promotion?
The American Lung Association believes that states must use these tobacco settlement dollars, which are intended to compensate states for the healthcare costs from treating sick smokers and former smokers, and revenue from tobacco taxes to fund robust tobacco prevention programs to help tackle the #1 preventable cause ...
Why was the tobacco industry sued?
The United States Justice Department has filed a massive civil lawsuit against the country's major tobacco companies, seeking to recover billions of dollars in long term costs related to treating ill smokers covered by the government health programmes.
When was the first tobacco lawsuit?
In 1994, Mike Moore, the state attorney general, filed the first state lawsuit against big tobacco. Individual lawsuits by smokers failed because courts held people responsible for their decision to smoke, but Moore argued that Mississippi shouldn't be forced to pay the costs of treating smoking-related diseases.
What happened to the tobacco whistleblower?
This lawsuit was dismissed as a condition of the June 20, 1997 historic $368 billion settlement between the Attorneys General of 40 States and the tobacco industry. He is credited with being the key witness in successful tobacco reform law suits. Dr. Wigand's case was portrayed in the film, The Insider (1999).
What was the big tobacco lawsuit?
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
How tobacco settlement money helps Disease Prevention and health Promotion?
The American Lung Association believes that states must use these tobacco settlement dollars, which are intended to compensate states for the healthcare costs from treating sick smokers and former smokers, and revenue from tobacco taxes to fund robust tobacco prevention programs to help tackle the #1 preventable cause ...
Which statement about the effects of nicotine use is true quizlet?
Which statement about the effects of nicotine use is true? Nicotine has no effect on brain chemistry.
When was the tobacco settlement?
November 1998The tobacco Master Settlement Agreement (MSA) is an accord reached in November 1998 between the state Attorneys General of 46 states, five U.S. territories, the District of Columbia and the four largest cigarette manufacturers in the United States.
What is the tobacco control act?
The Family Smoking Prevention and Tobacco Control Act, signed into law in 2009, gave the U.S. Food and Drug Administration the authority to regulate the manufacturing, marketing, and sale of tobacco products. It also restricted how tobacco companies can market to youth, and it banned flavored cigarettes (other than menthol). Public health advocates say flavored cigarettes, with candy-like flavors such as vanilla and cherry, were “starter” products aimed at getting young people addicted.
How many documents are there in the tobacco industry?
An archive of 14 million tobacco industry documents offers a close look at the companies’ advertising, marketing, manufacturing, research, and political activities. The archive is publicly accessible through the website Truth Tobacco Industry Documents, and it includes documents that were key to the litigation that resulted in the MSA. Some documents show how the manufacturers specifically targeted young people, women, blacks, Hispanics, and members of the military, for example.
What did the MSA do to the tobacco industry?
The MSA caused “the erosion of the industry’s credibility with the public ,” Billings said. He also noted that the effort began with “a handful of states, attorneys, and firms that really did take on a powerful foe.” Before that, the tobacco industry had been undefeated, he said. “Were it not for that partnership, I don’t think the settlement would have happened. That’s the legacy of the civil justice system—the ability to take on the most powerful.”
What is the MSA ban?
The MSA permanently bans the tobacco company signatories from certain advertising, marketing, and promotion practices. They cannot use cartoons, including Joe Camel, or other methods of targeting youth. They are barred from advertising on billboards and in public transit, and the MSA prohibited most brand-name event sponsorships.
What are some examples of illegal cigarette trafficking?
Some states also continue to deal with other problems such as illegal cigarette trafficking—which occurs when cigarettes are bought on tribal reservations, from overseas, or in states with low taxes, for example, and then are sold in states with high cigarette taxes.
What is the Truth Initiative?
Now called the Truth Initiative, the organization spreads its tobacco prevention message through its “truth” counter-marketing campaign.
When did cigarettes start to be cut?
November 1998 marked a pivotal moment in the history of cigarettes in the United States. Forty-six states and the four largest tobacco companies reached a landmark settlement that brought sweeping changes to cigarette manufacturers’ practices—and to rates of smoking. Since the settlement, cigarette smoking rates in the United States have been cut nearly in half.
What did the tobacco companies use their lies for?
At key points in time, when the U.S. government or states tried to legislate them, the tobacco companies used their lies to stall regulation, to stall warnings. ". Berman also said the success of this case shows that prosecutors can come together and take on the larger issues.
Why does the cigarette deal exclude the Food and Drug Administration?
However, the deal excludes any provision for Food and Drug Administration regulation over cigarettes because such a condition would require congressional approval.
How much money will tobacco companies offer farmers?
Tobacco companies will offer farmers about $5 billion to compensate for lower leaf demand resulting from the settlement. "The war against tobacco won't be won in one engagement," Gregoire said, adding, "This is but one battle. This is a realistic solution to our lawsuits. We couldn't overreach for unachievable goals.
How many lawsuits did the Gregoire deal resolve?
Deal resolves 37 state lawsuits. The deal resolves 37 state suits filed against the tobacco industry to recoup Medicaid costs of sick smokers.
Who owns the Liggett cigarette company?
Gregoire also said the deal includes Bennett LeBow's Brooke Group, owner of the Liggett cigarette company, which broke from the rest of the industry and became the first tobacco company to settle with the states in 1996 and 1997. "We're...pleased to be joining the agreement with the attorney generals and the rest of the tobacco industry," Bennett ...
Who makes cigarette smoke?
The cigarette makers, Philip Morris Cos. , the world's largest, RJR Nabisco Holdings Corp., Brown and Williamson Tobacco Corp. and Lorillard Inc., as well as smokeless tobacco maker UST Corp., will participate in the deal.
Does Joe Camel have a tobacco advertising campaign?
The deal bans the use of cartoon characters, such as the once-popular Joe Camel, in any tobacco advertising, though it will permit sports promotions of brand labels in retail stores. Finally, cigarette makers agreed to establish a $250 million foundation dedicated to reducing teen smoking.
What is the prohibition on tobacco companies?
Prohibiting tobacco companies from taking any action to target youth in the advertising, promotion or marketing of tobacco products.
What law gave the FDA the power to regulate tobacco products?
In 2009, the Family Smoking Prevention and Tobacco Control Act gave the FDA the power to regulate tobacco products. State attorneys general have been active participants in helping the FDA shape its regulatory authority.
What is the NAAG Center for Tobacco and Public Health?
The NAAG Center for Tobacco and Public Health works with the Settling States of the MSA to preserve and enforce the MSA’s monetary and public-health mandates, including: Representing, advising, and supporting the Settling States in MSA-related legal matters , including litigation and arbitrations.
How does the MSA affect smoking?
The MSA continues to have a profound effect on smoking in America, particularly among youth. Between 1998 and 2019 , U.S. cigarette consumption dropped by more than 50%. During that same time period, regular smoking by high schoolers dropped from its near peak of 36.4% in 1997 to a low 6.0% in 2019. As advocates for the public interest, state attorneys general are actively and successfully continuing to enforce the provisions of the MSA to reduce tobacco use and protect consumers.
How many tobacco companies have settled under the MSA?
Eventually, more than 45 tobacco companies settled with the Settling States under the MSA. Although Florida, Minnesota, Mississippi, and Texas are not signatories to the MSA, they have their own individual tobacco settlements, which occurred prior to the MSA.
What is the purpose of entering into agreements with major retail chains?
Entering into agreements with major retail chains to ensure that retailers comply with state laws setting the minimum age at which tobacco products may be purchased and limiting the quantity and content of tobacco advertising at retail locations.
What is the Truth Initiative?
Establishing and funding the Truth Initiative, an organization “dedicated to achieving a culture where all youth and young adults reject tobacco.”.
What effect did the Master Settlement Agreement have on tobacco advertising?
The Master Settlement Agreement with the tobacco industry appears to have had little effect on cigarette advertising in magazines and on the exposure of young people to these advertisements.
What are the marketing tools of tobacco?
41 Other marketing tools include coupons, direct mail, Internet advertising, newspaper advertising, point-of-sale advertising, promotional allowances to retailers, sponsorship of public entertainment, retail value-added programs (such as “buy one, get one free”), the distribution of samples, and the distribution of specialty items. Many of these promotional techniques have previously been found to have great appeal for young people. 3,19,42 No effort to reduce smoking among young people or other groups will succeed without a complete understanding of the entire marketing programs of tobacco companies.
How much did advertising for youth magazines increase in 1999?
Expenditures on advertising for youth brands in adult-oriented magazines increased by 11.0 percent from 1995 ($26.3 million) to 1998 ($29.2 million), remained constant in 1999 ($29.2 million), and increased by 8.6 percent in 2000 ($31.7 million) ( Table 1 ). Expenditures on advertising for youth brands in youth-oriented magazines increased by 3.7 percent between 1995 ($56.4 million) and 1998 ($58.5 million), increased by 15.2 percent in 1999 ($67.4 million), and returned to a level slightly higher than the presettlement level in 2000 ($59.6 million).
What is reach in cigarette?
Reach is defined as the proportion of all young people 12 to 17 years old who read one or more issues of a magazine containing an advertisement for a given brand of cigarettes during a given year. Data are from Competitive Media Reporting. Youth-oriented magazines were defined as those for which young readers represented more than 15 percent, on average, of the overall readership between 1995 and 2000 or that had an average of more than 2 million young readers. Youth and adult brands were defined as in Figure 1. The differences between adult and youth brands were significant (P=0.004 by the two-tailed paired-sample t-test).
Why were Spin magazine excluded?
Several major magazines with substantial readership among young people (including Spin, Entertainment Weekly, Vibe, Sport, Life, and Allure) were excluded because data on their readers were missing for certain years. Our estimates of both advertising expenditures and the potential exposure of young people are therefore conservative.
Does the Master Settlement Agreement affect cigarette advertising?
The Master Settlement Agreement with the tobacco industry appears to have had little effect on cigarette advertising in magazines. We found that both before and after the 1998 Master Settlement Agreement, tobacco companies consistently allocated to youth-oriented magazines a higher proportion of their expenditures for the advertising of youth brands than of expenditures for the advertising of adult brands and consistently maintained higher levels of exposure among young people to advertising for youth brands than to advertising for adult brands. Despite reductions in the expenditures for cigarette advertising in youth-oriented magazines in the second year after the settlement, the overall level of exposure of young people to this advertising remained high. Although the proposed restriction of cigarette advertising to magazines for which young readers represent less than 15 percent of the overall readership and that have fewer than 2 million young readers would reduce the exposure of young people to cigarette advertising in magazines, such a policy, even under the most optimistic assumptions, would not protect young people from substantial exposure to such advertising.
When did the Master Settlement Agreement start?
In 1998 , the attorneys general of 46 states signed a Master Settlement Agreement with the four largest tobacco companies in the United States. The agreement prohibits tobacco advertising that targets people younger than 18 years of age.
